SMBS vs. BNDD

Last updated Apr 2, 2026

Compare and contrast key facts about Schwab Mortgage-Backed Securities ETF (SMBS) and Quadratic Deflation ETF (BNDD).

SMBS and BNDD are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. SMBS is a passively managed fund by Charles Schwab that tracks the performance of the Bloomberg US MBS Float Adjusted Total Return Index. It was launched on Nov 18, 2024. BNDD is an actively managed fund by Quadratic. It was launched on Sep 16, 2021.

Performance

SMBS vs. BNDD - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Schwab Mortgage-Backed Securities ETF (SMBS) and Quadratic Deflation ETF (BNDD). The values are adjusted to include any dividend payments, if applicable.

SMBS vs. BNDD - Yearly Performance Comparison

	2026 (YTD)	2025	2024
SMBS Schwab Mortgage-Backed Securities ETF	0.47%	8.15%	-0.07%
BNDD Quadratic Deflation ETF	3.43%	-8.17%	-2.51%

Returns By Period

In the year-to-date period, SMBS achieves a 0.47% return, which is significantly lower than BNDD's 3.43% return.

SMBS

• 1D: 0.11%
• 1M: -1.15%
• YTD: 0.47%
• 6M: 1.88%
• 1Y: 5.07%
• 3Y*: —
• 5Y*: —
• 10Y*: —

BNDD

• 1D: 0.21%
• 1M: -0.46%
• YTD: 3.43%
• 6M: 0.20%
• 1Y: -5.98%
• 3Y*: -4.56%
• 5Y*: —
• 10Y*: —

*Multi-year figures are annualized to reflect compound growth (CAGR)

SMBS vs. BNDD - Expense Ratio Comparison

SMBS has a 0.03% expense ratio, which is lower than BNDD's 1.04% expense ratio.

BNDD

Quadratic Deflation ETF

SMBS

Schwab Mortgage-Backed Securities ETF

Return for Risk

SMBS vs. BNDD — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

SMBS

SMBS Risk / Return Rank: 57
SMBS Sharpe Ratio Rank: 58
SMBS Sortino Ratio Rank: 57
SMBS Omega Ratio Rank: 47
SMBS Calmar Ratio Rank: 70
SMBS Martin Ratio Rank: 54

BNDD

BNDD Risk / Return Rank: 5
BNDD Sharpe Ratio Rank: 4
BNDD Sortino Ratio Rank: 4
BNDD Omega Ratio Rank: 4
BNDD Calmar Ratio Rank: 5
BNDD Martin Ratio Rank: 7

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

SMBS vs. BNDD - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Schwab Mortgage-Backed Securities ETF (SMBS) and Quadratic Deflation ETF (BNDD). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	SMBS	BNDD	Difference
Sharpe ratio Return per unit of total volatility	1.07	-0.49	+1.56
Sortino ratio Return per unit of downside risk	1.54	-0.58	+2.12
Omega ratio Gain probability vs. loss probability	1.19	0.93	+0.26
Calmar ratio Return relative to maximum drawdown	1.93	-0.45	+2.37
Martin ratio Return relative to average drawdown	5.53	-0.68	+6.20
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

SMBS vs. BNDD - Sharpe Ratio Comparison

The current SMBS Sharpe Ratio is 1.07, which is higher than the BNDD Sharpe Ratio of -0.49. The chart below compares the historical Sharpe Ratios of SMBS and BNDD, offering insights into how both investments have performed under varying market conditions. These values are calculated using daily returns over the previous 12 months.

Sharpe Ratios by Period

	SMBS	BNDD	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	1.07	-0.49	+1.56
Sharpe Ratio (All Time) Calculated using the full available price history	1.28	-0.35	+1.63

Correlation

The correlation between SMBS and BNDD is 0.49, which is considered to be moderate. This suggests that the two assets have some degree of positive relationship in their price movements. Moderate correlation can be acceptable for portfolio diversification, offering a balance between risk and potential returns.

Dividends

SMBS vs. BNDD - Dividend Comparison

SMBS's dividend yield for the trailing twelve months is around 4.82%, more than BNDD's 3.63% yield.

	TTM	2025	2024	2023	2022	2021
SMBS Schwab Mortgage-Backed Securities ETF	4.82%	4.83%	0.50%	0.00%	0.00%	0.00%
BNDD Quadratic Deflation ETF	3.63%	3.82%	3.85%	4.30%	43.17%	1.04%

Drawdowns

SMBS vs. BNDD - Drawdown Comparison

The maximum SMBS drawdown since its inception was -3.20%, smaller than the maximum BNDD drawdown of -30.87%. Use the drawdown chart below to compare losses from any high point for SMBS and BNDD.

Drawdown Indicators

	SMBS	BNDD	Difference
Max Drawdown Largest peak-to-trough decline	-3.20%	-30.87%	+27.67%
Max Drawdown (1Y) Largest decline over 1 year	-2.83%	-10.93%	+8.10%
Current Drawdown Current decline from peak	-1.56%	-27.13%	+25.57%
Average Drawdown Average peak-to-trough decline	-0.77%	-19.04%	+18.27%
Ulcer Index Depth and duration of drawdowns from previous peaks	0.99%	7.27%	-6.28%

Volatility

SMBS vs. BNDD - Volatility Comparison

The current volatility for Schwab Mortgage-Backed Securities ETF (SMBS) is 1.83%, while Quadratic Deflation ETF (BNDD) has a volatility of 3.47%. This indicates that SMBS experiences smaller price fluctuations and is considered to be less risky than BNDD based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	SMBS	BNDD	Difference
Volatility (1M) Calculated over the trailing 1-month period	1.83%	3.47%	-1.64%
Volatility (6M) Calculated over the trailing 6-month period	2.75%	8.07%	-5.32%
Volatility (1Y) Calculated over the trailing 1-year period	4.77%	12.39%	-7.62%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	4.91%	13.55%	-8.64%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	4.91%	13.55%	-8.64%